Still cool concept. Creates precedent that a blockchain instrument is pari passu with the billions in fiat denominated bonds. Makes it more difficult for traditional bond holders to object in the future and given that its infinitely tradeable can easily lay off some of the risk in the future. If they had tendered the bonds to a third party they would likely have to have taken a discount on face value given the lack of precedent which would’ve had implications for the pricing of their other bonds. Issuing to a related party neatly sidesteps this mess

What I got over here is that it's good, first because precedent is stablished for cryptos being recognized by a corporation as holding actual value? And it somehow lays a stronger foundation for the price? But you lost me here when mentioning face value... Because if the buyers of said bonds want to sell them back they... Don't need to honor the selling price but the market price? When it's lower? See? Lots of confusion you caused...

Yeah. The precedent is important not just because a corporation is recognizing that crypto is holding actual value, but because implicitly all the other bond holders in fiat are acknowledging that it’s equal to fiat bonds - e.g., you can’t pay all the fiat bonds first and then pay these; you have to pay them all on equal terms. In bond world where you fall in the waterfall is absolutely critical and this creates the precedent that you can’t discount one set of bonds b/c they’re crypto.

The face value point basically just boils down to how expensive it is to borrow. When a company issues bonds they’re saying something along the lines of I’ll borrow 100 dollars for you and in exchange pay you 10 dollars of interest a year. Sometimes though no one wants to lend you 100 dollars for only 10 dollars of interest - in that case you coul either say I’ll pay you more than 10 dollars in interest or, alternatively, just give me 90 dollars instead of 100 and I’ll still pay you as if you had given me 100 dollars. This is a discount to face value or an original issue discount (OID) to get super technical.

When stuff like this happens, it is so obvious that crypto is going to take over the finance world as we know it, I can not believe how low-valued it all still is and how so many people (>99% of people) are not invested